B2C CMOs earn a higher salary than their B2B counterparts, according to the first-ever compensation report from the CMO Council.
"As such, this is the first comprehensive report regarding CMO compensation and provides significant insight into CMO salaries, incentives, benefits, as well as CMO expectations and perceptions of compensation fairness and value to the organization," CMO Council Executive Director Donovan Neale-May said in a statement.
The study, "CMO Compensation Report," which is based on a survey of 345 senior-level execs, the majority of whom were B2B, found that overall most CMOs earn between $100,000 and $350,000 per year. B2C CMOs earn the most—15.7 percent earn $350,000 or more compared to 7.1 percent of B2B CMOs and 10.0 percent of CMOs who work at hybrid B2B/B2C companies.
Most B2B CMOs (42.6 percent) make $100,000 to $199,000 annually, but 36.8 percent bring home $200,000 to $349,000 a year. Just 4.5 percent make $350,000 to $499,000, and an even smaller percentage—2.6 percent—earn more than $500,000. Some (13.5 percent) earn less than $100,000.
In contrast, the majority of B2C CMOs (41.4 percent) make $200,000 to $349,000 annually. Thirty percent earn $100,000 to $199,000, while just 12.9 percent take home less than $100,000. Only 8.6 percent make $350,000 to $499,000 a year, and 7.1 percent make more than $500,000.
Marketers who work at hybrid B2B/B2C companies fall in the middle—on average they make slightly more than B2B CMOs and slightly less than B2C CMOs. Almost half (40.8 percent) earn in the $100,000 to $199,000 range, while 39.2 percent get paid $200,000 to $349,000 annually. Fewer hybrid CMOs (10.0 percent) make less than $100,000 than B2B or B2C counterparts, 6.7 percent pull in $350,000 to $499,000 a year, and 3.3 percent earn more than $500,000.
However, all is not lost for B2B CMOs. While B2C execs rake in more cash, B2B CMOs are more likely to receive a bonus. Eight-nine percent of B2B CMOs said they receive bonuses compared to 78.6 percent of B2C CMOs and 84.2 percent of B2B/B2C hybrid CMOs.
One thing they all agree on, however, is that they're not being paid enough. The majority (56.8 percent) of those making less than $100,000 a year said they are underpaid compared to other marketing execs, while 37.4 percent of CMOs who earn $100,000 to $199,000 and 26.1 percent of CMOs who earn $200,000 to $349,000 said the same thing. Even the CMOs with higher salaries think they are underpaid—14.3 percent getting paid $350,000 to $499,000 a year said they don't get paid enough, while an even higher percentage (28.6 percent) of earners making $500,000 said the same thing.
"With a minority of CMOs believing that they are fairly paid, there appears to be a general issue with CMO compensation," said Kimberly A. Whitler of the Darden School of Business at the University of Virginia, the author of the report. "This high degree of dissatisfaction suggests that either CMOs are actually underpaid relative to key benchmarks identified in the report or that CMOs just believe they are underpaid. This important finding may be a key driver of CMO turnover and suggests both a greater need: 1) to understand why CMOs believe they are underpaid, and 2) for more collaboration between executive recruiters, CHROs and CEOs to ensure that CMOs are fairly compensated."
-See this CMO Council report
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